MONETA Money Bank has received shareholders’ nod for the proposed transaction with PPF Group and issue of new shares to fund the $1.16bn (CZK25.9bn) deal.

The deal will see MONETA acquire a 100% stake in PPF’s Air Bank, the Czech and Slovak units of consumer lender Home Credit and peer-to-peer lender Zonky.

MONETA plans to raise nearly $935.23m through a two-round subscription of 255.5 million new shares to fund the acquisition. The remaining will be financed from the bank’s excess capital.

Notably, 77.85% of shareholders voted in favour of the deal and issue of new shares.

MONETA Money Bank chairman of the management board Tomáš Spurný said: “We believe that the acquisition of Air Bank Group will create a strong Czech banking champion for entrepreneurs and retail customers in the domestic banking market.

“In this context, we will be a stable pillar of the Czech economy and an important competitor for other large banks operating in the Czech Republic, which control 70% of the domestic market.”

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By GlobalData

The deal, announced earlier this year, could not get shareholders’ approval before because the previous plan would have given PPF majority control in MONETA. It already owns a 30% stake in the bank.

Under the new plan, PPF will subscribe to all the new shares offered in the second round, which will include the unsubscribed shares of the first round at a price of CZK90 apiece.

MONETA, which stands at the sixth position in the Czech banking industry, seeks to rise to the top through the deal. The combined entity will have a customer base of 2.5 million.